Finding Text
Assistance Listing, Federal Agency, and Program Name 93.493, U.S. Department of Health and Human Services, Congressional Directives Federal Award Identification Number and Year CE1HS52674 & CE1HS53568 2025 Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Under 2 CFR 200.305, the Corporation is required to maintain and follow documented cash management procedures that are consistent with federal statutes, regulations, and the terms and conditions of the federal award. The Uniform Guidance requirement is that cash drawdown and disbursement practices for federal awards are governed by formal written policies and procedures designed to ensure compliance with applicable cash management requirements. Condition The Corporation’s cash management policies were not in conformance with Uniform Guidance requirements. Although cash management transactions tested were performed in accordance with existing practices, the Corporation did not have a written cash management policy that met Uniform Guidance requirements. Questioned Costs None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported N/A Identification of How Questioned Costs Were Computed N/A Context - For all cash management transactions selected for testing, controls and procedures were followed in practice; however, no written policy existed that met Uniform Guidance requirements. Accordingly, the finding reflects a formal policy deficiency rather than identified transaction-level exceptions within the items tested. Cause and Effect The Corporation did not have a written cash management policy and related procedures in place that were aligned with Uniform Guidance requirements. As a result, compliance in this area was not supported by a formal policy framework. Without documented cash management policies and procedures, the Corporation cannot demonstrate that its cash management practices are formally designed and administered in accordance with federal requirements. This increases the risk of inconsistent application of cash management practices and noncompliance with federal cash management requirements, and it resulted in material noncompliance over the major program Recommendation The Corporation concurs with the finding. The Corporation will implement and formally adopt written cash management policies and procedures that conform to Uniform Guidance requirements and ensure those procedures are consistently followed and documented.